Bitcoin Price Analysis: BTC Finds Support at $27,250 – Retrace Next Week?

Bitcoin price analysis is bullish today as we saw further declines over the past few days and support found at $27,250. Additionally, BTC/USD is currently forming a strong bullish reversal candle, indicating that the retracement should follow early next week. Therefore, we expect a quick recovery to begin overnight, with the previous support of $28,250 as the first target.

Cryptocurrency heat map. Source: Coin360

The market traded in the red for the past 24 hours as the selloff continued across the board. The leader, Bitcoin, lost 3.62%, while Ethereum around 5%. The rest of the top altcoins tested an even bigger downside.

Bitcoin Price Movement in the Last 24 Hours: Bitcoin Falls Another 5% and Begins Reversal Consolidation

BTC/USD traded in a range of $27,049.04 to $28,721.02, indicating high volatility over the past 24 hours. The trading volume decreased by 19.22%, totaling $33.89 billion, while the total market capitalization is trading around $526.56 billion, resulting in a market dominance of 47.82%.

BTC/USD 4-hour chart: BTC ready to retrace?

On the 4-hour chart, we can see a clear 4-hour reversal candle forming, indicating that more upside should follow by the end of the day. Likely, the previous support at $28,250 will soon be tested as resistance, with much more upside potential to be seen later next week.

Bitcoin Price Analysis: BTC Finds Support At $27,250 Overnight, Retrace Next Week?
BTC/USD 4 hour chart. Source: TradingView

Bitcoin price action saw a strong break below the previous consolidation zone over the weekend. After forming a descending triangle consolidation pattern in early June, BTC/USD saw weakness mid-week as bulls failed to retest the descending trendline once more.

From there, consolidation formed between $30,000 and $30,500, with lower and lower local highs indicating a downward push to follow. The first lower advance followed on Friday, leading to a clear break from previous major support at $29,250.

After a brief retest of previous support as resistance, Bitcoin continued even lower early on Saturday. The next support target was hit at $28,250 early yesterday, potentially indicating a reversal to follow.

However, BTC/USD failed to reverse after several hours of consolidation late yesterday, leading to further selling overnight into today. Bitcoin price quickly lost another 5% before support was found at $27,250. Around here, consolidation followed today, with the formation of a rejection candle over the past few hours.

Overall, if we can see strong price action over the next few hours and a strong daily close, BTC should be very bullish next week. It is likely that the previous support of $28,250 will be reached quickly, with much more room for a retracement to follow considering how much has been lost over the past few days.

The most likely target for the upcoming retracement is the previous major support at $29,250. If the price can stabilize around there, a clear lower top would be established, paving the way for much more downside over the next few weeks.

Alternatively, if the recovery can move to $30,500, we would only see a slightly lower top. Bitcoin price could then attempt to set a higher low to eventually reverse the current multi-month decline. All in all, it all depends on how well the bulls will manage to retrace the price of Bitcoin next week.

Bitcoin Price Analysis: Conclusion

Bitcoin price analysis is bullish today as we have seen a steep decline over the past few days resulting in a loss of over 13%. Therefore, the bears should finally be exhausted and the current support at $27,250 should act as a pivot point for the market. If the current 4-hour bullish pin-bar candle can close strongly, we could see the first upside push overnight.

Until Bitcoin goes further, check out our price predictions on UNUS SED LEO, BITO, and Klaytn.


Disclaimer. The information provided is not commercial advice. assumes no responsibility for investments made on the basis of the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Previous Let's drop this 'borrowing and heartbreaking' APC, Atiku urges in Democracy Day message
Next ORPEA announces the conclusion of a conciliation protocol with its banking core and its approval by the Commercial Court of Nanterre